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The ABC analysis is used classification of both purchases and inventories based on monetary
value. It employs the Pareto principle resulting in three classes of inventory so that management
efforts can be focused on "critical few" items rather than "trivial many" items.
Conduct the ABC analysis according to "annual dollar volume."
Can someone please explain how to calculate this data using all the information provided. Thank
you!

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The ABC analysis is used classification of both purchases and invent.pdf

  • 1. The ABC analysis is used classification of both purchases and inventories based on monetary value. It employs the Pareto principle resulting in three classes of inventory so that management efforts can be focused on "critical few" items rather than "trivial many" items. Conduct the ABC analysis according to "annual dollar volume." Can someone please explain how to calculate this data using all the information provided. Thank you!